How to draw a trend based FIB extension?

These levels are based on Fibonacci ratios. To draw Trend-Based Fib Extension, three points needed. Once the three points are set, the level lines are drawn up to Fibonacci sequence. The first point chosen is the start of a move, the second point is the end of a move, and the third point is the end of the retracement against that move.

What is a Fibonacci extension?

Fibonacci extensions is a tool that traders can use to establish profit targets or estimate how far a price may move. Extension levels are also possible areas where the price is expected to reverse. Extensions are drawn on a chart, marking the price levels of possible importance. These levels are based on Fibonacci ratios.

What are Fibonacci retracements & extensions?

In the realm of technical analysis, few tools capture the imagination of traders as effectively as Fibonacci retracements and extensions. Derived from the famous Fibonacci sequence, these levels offer insights into potential price reversals, extensions, and trend continuation points.